How are CPAY straddle max profit and max loss calculated?

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CPAY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,282.30 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPAY straddle?

The breakeven for the CPAY straddle priced on this page is roughly $317.00 and $363.00 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CPAY market-implied 1-standard-deviation expected move is approximately 10.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPAY implied volatility affect this straddle?

CPAY ATM IV is at 36.70% with IV rank near 39.38%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

CPAY Straddle Strategy

CPAY (Corpay, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.

Corpay, Inc. operates as a global financial technology firm, delivering payment solutions that assist both businesses and individual consumers in efficiently managing a diverse range of expenditures. Its expertise primarily covers vehicle-related costs, corporate financial transactions, and lodging expenses, with operations spanning the United States, Brazil, the United Kingdom, and numerous other international markets. Among its specialized services are comprehensive vehicle payment offerings, which include provisions for fuel, road tolls, parking fees, fleet maintenance, and long-distance transportation. The company also supplies prepaid vouchers and cards for food and transit requirements. For its corporate clientele, Corpay furnishes sophisticated payment instruments such as automated accounts payable systems, virtual payment cards, solutions for international transactions, and dedicated purchasing alongside travel and entertainment card products. Its lodging payment services cater to a broad spectrum of needs, supporting employees on overnight business trips, airline and cruise personnel or stranded passengers, and insurance policyholders displaced from their residences due due to damage or catastrophe.

CPAY (Corpay, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $21.73B, a trailing P/E of 19.08, a beta of 0.87 versus the broader market, a 52-week range of 252.84-367.43, average daily share volume of 616K, a public-listing history dating back to 2010, approximately 11K full-time employees. These structural characteristics shape how CPAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.87 places CPAY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a straddle on CPAY?

A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.

Current CPAY snapshot

As of June 29, 2026, spot at $335.12, ATM IV 36.70%, IV rank 39.38%, expected move 10.52%. The straddle on CPAY below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.

Why this straddle structure on CPAY specifically: CPAY IV at 36.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.52% (roughly $35.26 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPAY should anchor to the underlying notional of $335.12 per share and to the trader's directional view on CPAY stock.

CPAY straddle setup

The CPAY straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CPAY near $335.12, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPAY chain at a 18-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 CPAY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$340.00	$10.55
Buy 1	Put	$340.00	$12.45

CPAY straddle risk and reward

Net Premium / Debit: -$2,300.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$2,282.30
Breakeven(s): $317.00, $363.00
Risk / Reward Ratio: Unbounded

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.

CPAY straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on CPAY. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	+$31,699.00
$74.11	-77.9%	+$24,289.42
$148.20	-55.8%	+$16,879.84
$222.30	-33.7%	+$9,470.27
$296.39	-11.6%	+$2,060.69
$370.49	+10.6%	+$748.89
$444.58	+32.7%	+$8,158.47
$518.68	+54.8%	+$15,568.05
$592.78	+76.9%	+$22,977.62
$666.87	+99.0%	+$30,387.20

When traders use straddle on CPAY

Straddles on CPAY are pure-volatility plays that profit from large moves in either direction; traders typically buy CPAY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

CPAY thesis for this straddle

The market-implied 1-standard-deviation range for CPAY extends from approximately $299.86 on the downside to $370.38 on the upside. A CPAY long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CPAY IV rank near 39.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on CPAY should anchor more to the directional view and the expected-move geometry. As a Technology name, CPAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPAY-specific events.

CPAY straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. CPAY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPAY alongside the broader basket even when CPAY-specific fundamentals are unchanged. Always rebuild the position from current CPAY chain quotes before placing a trade.

Frequently asked questions

What is a straddle on CPAY?: A straddle on CPAY is the straddle strategy applied to CPAY (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With CPAY stock trading near $335.12, the strikes shown on this page are snapped to the nearest listed CPAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPAY straddle max profit and max loss calculated?: Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CPAY straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 36.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$2,282.30 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPAY straddle?: The breakeven for the CPAY straddle priced on this page is roughly $317.00 and $363.00 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CPAY market-implied 1-standard-deviation expected move is approximately 10.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on CPAY?: Straddles on CPAY are pure-volatility plays that profit from large moves in either direction; traders typically buy CPAY straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
How does current CPAY implied volatility affect this straddle?: CPAY ATM IV is at 36.70% with IV rank near 39.38%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.